Ethanol Producer Magazine

February 18, 2019

Syngenta

On Feb. 13, Syngenta announced a three-year marketing agreement with Kansas Ethanol LLC to use Enogen corn enzyme technology at its 80 MMgy ethanol plant in Lyons, Kansas.

Enogen corn enzyme technology is an in-seed innovation available exclusively from Syngenta and features the first biotech corn output trait designed specifically to enhance ethanol production. Using modern biotechnology to deliver best-in-class alpha amylase enzyme directly in the grain, Enogen corn eliminates the need to add liquid alpha amylase and can help an ethanol plant significantly reduce the viscosity of its corn mash, improving plant performance. Numerous trials have shown that Enogen hybrids perform equal to or better than other high-performing corn hybrids.

Enogen corn will provide the Kansas Ethanol facility with an industry-leading enzyme for enhanced ethanol production, while also supporting local growers and the community. The Kansas Ethanol facility will be accepting its first load of Enogen grain this fall. 

“This agreement will enable us to buy more corn directly from farmers and purchase alpha amylase locally, in the form of high-quality grain,” said Mike Chisam, President and CEO of Kansas Ethanol. “We believe Enogen corn will create value for our plant, our growers and our community.” 

Farmers who grow Enogen corn are eligible to earn an additional premium per Enogen bushel. To date, more than $100 million in premiums have been paid to Enogen growers. According to data from Iowa State University, these premiums create an additional $63 million in economic activity for a total of $163 million in cumulative economic benefit to the region.

“We are proud to partner with Kansas Ethanol to help keep enzyme dollars local and help them invest in their local community,” said Jeff Oestmann, head, biofuels operations—Enogen at Syngenta. “Syngenta is committed to the success of the ethanol industry through helping plants operate more efficiently and providing growers the opportunity to serve as enzyme suppliers.”

Read the original article: Kansas Ethanol Signs Agreement to Use Enogen Corn From Syngenta

Pine and Lakes Echo Journal

February 15, 2019

By Representative John Poston

Reuters

February 11, 2019

By Humeyra Pamuk 

The U.S. Environmental Protection Agency is considering releasing its draft proposal to expand sales of higher ethanol blends of gasoline without including simultaneous measures it promised the oil industry to curb biofuel credit speculation, according to three sources familiar with the matter.

The move would help the agency lift a summertime ban on sales of so-called E15 gasoline in time for the U.S. driving season, but is likely to anger oil refiners that had been asking the Trump administration for biofuel credit market reforms to reduce their costs.

If EPA passed on introducing biofuel credit trading limits, it would leave the door open to potential speculative price surges that could cost refiners like Valero Energy Corp hundreds of millions of dollars. President Donald Trump announced in October he was directing the EPA to allow year-round sales of E15, in a win for the powerful corn industry which supplies ethanol. E15 gasoline contains 15 percent ethanol, versus the 10 percent found in most U.S. gasoline.

The ban had been imposed over concerns that E15 contributes to smog in hot weather.

EPA spokesman Michael Abboud declined to comment.

The EPA had initially planned to combine credit trading limits into the E15 rule as a concession to the oil industry, which says speculation increases the price of biofuel credits it must purchase to comply with federal law.

Under the U.S. Renewable Fuels Standard oil refiners have to blend increasing volumes of biofuels into the nation’s gasoline and diesel each year, or purchase credits - called Renewable Identification Numbers - from those who do.

The combined draft proposal was scheduled for release this month, and was meant to be finalized and implemented by June.

“The EPA has been seriously looking at dropping the RIN reform to speed up the process on E15,” one industry source with knowledge of the matter said.

One other source said that the EPA had already decided to delay the credit trading limits. “They separated the RIN reform to ensure that the (E15) rule would get done in a timely manner,” the source said.

The sources asked not to be named discussing the matter.

The agency is still working to release its draft rule for E15 by the end of the month, possibly within days, and is planning to expedite the rule-making process to finish it by June when seasonal driving demand picks up.

The recent partial government shutdown in the United States had raised concerns the effort might not be completed on time because agency workers were furloughed. Bill Wehrum, a senior EPA official, in charge of the department drafting the rule, said the agency would still make it ready for summer driving season.

Read the original article: Exclusive: EPA May Issue E15 Gasoline Plan Without Biofuel Credit Trade Limits - Sources

Renewable Fuels Association

February 8, 2019

News Article

U.S. ethanol exports through November 2018 reached 1.56 billion gallons, up 31% from the same period a year earlier and already a calendar-year record. Exports remained robust in November although volumes for the month decreased 16% to 147.9 million gallons (mg), according to government data released this morning and analyzed by the Renewable Fuels Association (RFA). In a departure from recent trends, sales were heavily concentrated in just three countries accounting for nearly three-fourths of all U.S. ethanol shipments in November. Brazil imported 51.2 mg, representing 35% of total U.S. export sales. While this was 3.2 mg lower (-6%) than October volumes, it was enough to secure Brazil’s position as the top U.S. ethanol customer for a second straight month. Canada decreased its imports of American ethanol by 8% to 28.4 mg, the lowest volume in seven months but still 19% of total ethanol shipments in November. Volumes exported to India were a solid 28.1 mg (19% of U.S. ethanol exports), slipping just 3% from a record offtake in October. Mexico imported a record 4.8 mg, up 144% for the month.

The Netherlands (8.2 mg, down 21%), South Korea (6.2 mg, down 20%), and Spain (4.3 mg, up 156% to a 13-month high) were other top markets. Notably, after purchasing 6.2 mg in U.S. imports in October, the Peruvian market essentially disappeared with the implementation of countervailing duties on U.S. ethanol by their government in November.

November exports of undenatured fuel ethanol were 90.5 mg, an increase of 10.9 mg (14%). Brazil purchased 51.2 mg (up 10 mg or 23%), representing 57% of our undenatured export market while exports to India at 14.6 mg were down 10 mg (41%). Expanded volumes were shipped to the Netherlands (8.2 mg, up 7 mg), Mexico (4.8 mg), Spain (4.3 mg), and South Korea (2.8 mg) in November while the Philippines (2.4 mg) cut imports in half.

American producers shipped 41.0 mg of denatured fuel ethanol in November, down 55% from the October record (91.4 mg) and the smallest volume in ten months. Most of the global export market contraction can be attributed to quiet trading in six major markets (Brazil, the Netherlands, the United Arab Emirates, Peru, Oman, and the Philippines) that were responsible for cumulative imports of over 46 mg in October. Canada captured two-thirds of our denatured fuel export market with 25.7 mg of product, despite a 9% decrease from prior month sales. India’s November purchases were up 70% for a 13-month high of 7.5 mg, accounting for 18% of our denatured fuel ethanol market. Other top customers were Colombia (2.6 mg), South Korea (2.5 mg), and Jamaica (2.2 mg).

November sales of American denatured non-fuel ethanol skyrocketed to a record 12.3 mg, up from 2.5 mg in October. India re-entered the market to purchase 6.0 mg (48% of total sales), Nigeria also stepped back in with 3.6 mg (29% share) in sales, and 2.6 mg crossed into Canada (up 8%). November U.S. exports of undenatured non-fuel product more than doubled to 4.1 mg. The majority of product shipped to Saudi Arabia (1.7 mg), Japan (1.3 mg), and South Korea (0.9 mg).

The United States imported 9.9 mg of undenatured ethanol from Brazil in November. Total year-to-date U.S. ethanol imports stand at 66.9 mg—essentially all sourced from Brazil. This is 13% behind last year at this time.

November exports of U.S. dried distillers grains with solubles (DDGS)—the main animal feed co-product generated by dry mill ethanol plants—were 1.017 million metric tons (million mt). While shipments tapered slightly (-0.2%), November was the sixth straight month that global demand breached 1 million mt. Mexico purchased 174,465 mt (up 9%) to capture 17% of the market. U.S. shippers sent 166,008 mt of DDGS to Vietnam, up 47% and the largest volume in nearly two years. Shipments of 97,600 (up 1%) entered Indonesia to set a new monthly record. U.S. DDGS export volumes to some key markets contracted, although demand remained robust: Thailand (79,603 mt, -14%), South Korea (71,699 mt, -12%), Canada (51,787 mt, -18%), and the United Kingdom (48,598 mt, -33%). Year-to-date U.S. DDGS exports are 10.99 million mt, implying an annualized total of 11.99 million mt. If realized, U.S. distillers grains exports would capture the second-largest annual volume on record.

Read the original article: Strong Global Demand for U.S. Ethanol and DDGS Continues into November

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CNBC

February 6, 2019

Ethanol Producer Magazine

February 6, 2019

By Matt Thompson

For the National Association of Convenience Stores, selling E15 is a matter of giving consumers plenty of fuel options. “We like the optionality of being able to have lots legal choices and really sell what the consumer wants to buy,” said Paige Anderson, NACS’s director of government relations. “And in our minds, that’s the best way to go, so we like the fact that there’s lots of choice out there for us and we think ultimately that’s the best thing for the consumer.”

But, she says, the biggest barrier preventing retailers from adding E15 to their product mix is not being able to offer the fuel year-round. “What we hear over and over from our folks is … ’When are we not going to have to change our labels after nine months?’ This is the number one issue we hear about for those either trying to sell E15 or who are looking and exploring to sell E15,” she said.

So it’s no surprise that NACS is keeping an eye on EPA’s rule making process to extend the Reid vapor pressure (RVP) waiver to blends higher than E10, and allowing their sale year-round. President Donald Trump directed the EPA last year to allow for year-round sales prior to 2019’s driving season.

“For those that are on the sidelines that have been looking and are interested in getting the E15, they’ve been waiting until this gets approved and they have the ability to sell year-round,” Anderson said. “So … making sure that we get that RVP one-pound wavier for E15, certainly has been a key issue for our folks looking to expand and start selling E15 to consumers.” She added that it’s also a major issue for retailers who are already selling the blend, as changing labels is a hassle.

Two issues NACS is watching closely are potential renewable identification number (RIN) reforms and the small refinery exemption process. Anderson both issues have potential to effect retailers.

“The folks that sort of negotiated this deal to get this to happen, they want to do a lot of changes to the RINs program, … which potentially could be very harmful and have the opposite effect of trying to encourage more biofuel into the marketplace. And so, ok, we’ve done a good thing by allowing year-round sales of E15, but now we have to look at all of these reforms to the RIN program that aren’t needed or makes it more difficult.”

Anderson said NACS’s focus on small refinery exemptions has been around gaining more transparency into how decisions are made and who receives the waivers. “We strongly believe we need to know what the criteria is in granting a waiver so that we all know what the rules of the road are in the process and how you grant it,” she said. “And then we believe when a decision’s made one way or another, that that information is given to everybody at the same time so that a particular entity doesn’t have an unfair advantage.”

And how EPA deals with extending the waiver and RIN reform will play a role in whether or not the rulemaking is completed in time for the summer driving season. “It’ll be interesting to see how they deal with the one-pound waiver rulemaking and how they deal with potential RINs reform,” she said. “Do they do it together? Do they do it separate? And I think that’s going to also effect how long they take and how this moves.” She added that, barring another government shutdown, NACS feels it is possible for the RVP waiver for E15 to be in place prior to the summer driving season.

Despite the prohibition on selling E15 during the summer months, Anderson said retailers who are currently offering E15 are happy with the product. “Our folks that have jumped in with both feet and are giving it a try have been positive and they really want to be able to sell it year-round,” she said.

Read the original article: NACS Favors Giving Consumers Options At the Pump

Renewable Fuels Association

February 6, 2019

Press Release

A new study released today finds that the expanded Renewable Fuel Standard (RFS2) has been a tremendous success in reducing greenhouse gas (GHG) emissions, with nearly 600 million metric tons of GHG reduction since 2007. Actual GHG reductions under the RFS2 have far surpassed the Environmental Protection Agency’s (EPA) original expectations of 422 million metric tons, according to the study. The analysis was conducted by Life Cycle Associates, a California-based scientific consulting firm, and commissioned by the Renewable Fuels Foundation (RFF).

The findings, which come as two House committees hold climate change hearings this morning, highlight the important role that ethanol and other biofuels can play in efforts to fight climate change and reduce GHG emissions.

“The RFS2 has resulted in significant GHG reductions, with cumulative CO2 savings of 600 million metric tonnes over the period of implementation,” according to the study. “The GHG reductions are due to the greater than expected savings from ethanol and other biofuels. These emissions savings occur even though cellulosic biofuels have not met the RFS2 production targets. Biofuels have achieved and exceeded the GHG reductions estimated by EPA.”

As outlined in the report, the larger-than-expected GHG reductions are due to:

-The adoption of technology improvements in the production of corn-based ethanol, resulting in far greater GHG reductions than originally estimated by EPA;

-The GHG emissions of petroleum are higher than the baseline estimates originally projected by EPA; and

-Advanced biofuels like biodiesel, renewable diesel, and renewable natural gas have contributed additional GHG reductions, even though actual cellulosic biofuel production has been lower than initially projected.

Using the latest available data and modeling tools, the study found that the conventional ethanol consumed in 2018 reduced GHG emissions by 43 percent compared to petroleum, even when hypothetical “land use change” are included. That compares to EPA’s initial projections that conventional ethanol would achieve only a 20 percent GHG reduction versus petroleum.

“As this study demonstrates, renewable fuels like ethanol are an incredibly effective tool for reducing GHG emissions,” said Geoff Cooper, President and CEO of the Renewable Fuels Association (RFA). “And with renewable fuels, we don’t need to cross our fingers and wait for the development and commercialization of a new technology. Ethanol is available here and now to help our nation decarbonize our transportation fuels in a cost effective manner. As the new Congress turns its focus to climate change and efforts to reduce GHG emissions, we encourage lawmakers to recognize and build upon the incredible success of the RFS.”

The 600 million metric tons of GHG reduction achieved under the RFS is equivalent to the GHG savings that would result from removing roughly half of the nation’s automobiles from the road for a full year or shutting down 154 coal-fired power plants for a year, according to EPA.

A copy of the report is here.

Life Cycle Associates Managing Director Stefan Unnasch will be presenting this report on Tuesday, Feb. 12 at RFA’s National Ethanol Conference in Orlando. 

Life Cycle Associates analyzes the energy and environmental impacts of fuels and energy systems. The firm’s work focuses on the assessment of fuel production pathways on a well to wheel basis, economic analysis of energy systems, process engineering analysis of fuel production systems, and the development of GHG reduction strategies. Life Cycle Associates has conducted studies and research for the Natural Resources Defense Council (NRDC), U.S. Department of Energy, U.S. EPA, California Energy Commission, California Air Resources Board, the European Commission, Coordinating Research Council (CRC), Northeast States for Coordinated Air Use Management (NESCAUM), Federal Aviation Administration, New Fuels Alliance, Alberta Department of Energy, and many others.

Read the original article: New Study: RFS2 Has Reduced GHG Emissions by 600 Million Metric Tons, Beating EPA Expectations